More mobile makers such as Huawei and Miramax are looking to corner low-end 3G handsets market in emerging markets such as India and Indonesia, but compelling services and ubiquitous coverage more important drivers for adoption than cheaper prices, observers stated.

According to Shiv Putcha, principal analyst for emerging markets at Ovum, low-end 3G smartphones are only starting to make an appearance in Asia, with markets such as India and Indonesia embracing entrance of sub-US$100 devices.

However, in these emerging markets, the prepaid subscriber base is very high and operators are loath to subsidize handsets too heavily, he noted. As such, an attractive price point may entice some consumers to upgrade to a 3G smartphone but it is not enough to generate mass market appeal.

Service, ubiquitous coverage more important"In this environment, other strategies must be adopted to stimulate consumption of smartphones and data services," Putcha stated. "Beyond price, you need compelling and affordable services that are backed by wide, near-ubiquitous [network] coverage."

At this point, 3G networks are not a must-have for many Asian markets as consumers are value-conscious and aware of the limited coverage, he added.

Benedict Hong, regional account director for telecommunication at GfK Asia, added that while a 3G network is "definitely a plus" for users, it is not the only network that smartphones can operate in.

"Even the best infrastructure will be limited by the speeds of the smartphones and vice versa. The number of mobile broadband users on a network can also result in bandwidth clogging, which will result in less-than-optimal user experiences," he said in his e-mail.

Hong also said having differentiated price points for different consumer segments is a strategy that is important in emerging market, especially since operators are not heavily subsidizing the costs of smartphones.

Lesser-known manufacturers such as Huawei and Micromax are also working hard to push entry-level 3G smartphones, alongside more established brands such as Samsung and HTC, and Hong expects significant activities from this segment in the coming quarters.